Spirit Airlines Bankruptcy Filing

(Reuters) – Spirit Airlines (NYSE:SAVE), a pioneer in no-frills air travel, has filed for bankruptcy protection on Monday after enduring a protracted series of quarterly losses, a failed merger attempt, and upcoming debt maturities.

Known for its distinctive bright yellow livery, Spirit is now the first major U.S. airline to file for Chapter 11 protection since 2011.

The airline has not posted a full-year profit since 2019 and has faced an uncertain future following the collapse of its $3.8 billion planned merger with JetBlue Airways (NASDAQ:JBLU) earlier this year.

Timeline of Events

• Feb. 7, 2022: Spirit Airlines, in partnership with budget carrier Frontier Group Holdings (NASDAQ:ULCC), proposed a $2.9 billion tie-up aiming to create the fifth-largest U.S. airline.

• April 5, 2022: JetBlue Airways made an unsolicited $3.6 billion bid for Spirit, complicating its merger plans with Frontier.

• May 2, 2022: The Spirit board rejected JetBlue's offer, citing antitrust concerns.

• May 16, 2022: JetBlue initiated a hostile takeover bid for Spirit.

• May 19, 2022: Spirit urged shareholders to reject JetBlue's bid, calling it a disruptive attempt.

• May 23, 2022: CEO Ted Christie expressed confidence in the merger with Frontier.

• June 2, 2022: Frontier offered a break-up fee of $250 million to secure its bid.

• June 28, 2022: Spirit rejected another bid from JetBlue due to antitrust issues.

• July 27, 2022: Spirit canceled its sale to Frontier after shareholders showed reluctance.

• July 28, 2022: Spirit accepted JetBlue’s $3.8 billion buyout deal.

• Oct. 19, 2022: Shareholders voted in favor of the JetBlue takeover.

• Dec. 9, 2022: Spirit offered significant pay raises to pilots.

• March 7, 2023: The U.S. Justice Department filed a lawsuit to block the JetBlue merger.

• Oct. 31, 2023: The department argued before a judge against the merger at the antitrust trial.

• Jan. 16, 2024: A federal judge blocked the merger, siding with the Justice Department.

• Jan. 19, 2024: Spirit considered debt refinancing options following stock declines.

• March 4, 2024: The companies canceled their merger agreement due to antitrust concerns.

• April 8, 2024: Spirit delayed aircraft deliveries and furloughed 260 pilots to improve cash flow.

• July 1, 2024: New CFO Fred Cromer was appointed.

• July 30, 2024: Spirit aimed to enhance its offerings in premium travel for better earnings.

• Oct. 22, 2024: Frontier Airlines reportedly explored a renewed bid for Spirit.

• Oct. 30, 2024: Spirit announced more pilot furloughs for financial stability.

• Nov. 12, 2024: Spirit initiated talks with creditors and explored liquidity improvement strategies.

• Nov. 18, 2024: Spirit Airlines filed for bankruptcy protection due to ongoing losses and failed merger attempts.